A second interest rate cut by the Reserve Bank next month is now a done deal, economists believe, and a third is increasingly on the cards before the year is out, after the economy recorded its weakest quarterly growth for two years.
Gross domestic product grew 0.2 per cent in the March quarter, when the market consensus and central bank expected 0.6 per cent. Annual average growth slowed to 3.2 per cent from 3.3 per cent in December.
With population growth running strong, underpinned by net immigration, aggregate measures of GDP paint a more flattering picture than per capita ones. Output per capita shrank 0.4 per cent in the March quarter and grew 1.5 per cent on an annual average basis, steady on its pace during the three previous years.
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